BMC 2Q earns beat Street; OKs $1B share buyback

HOUSTON (AP) — BMC Software said Wednesday that its second-quarter net income fell from a year ago as revenue slipped and marketing expenses rose. The earnings still beat analyst expectations and the company approved the buyback of 15 percent of its outstanding shares in the next 12 months. Its stock rose on the news.

Net income in the three months to Sept. 30 fell to $97.8 million, or 61 cents per share, from $114.7 million, or 65 cents per share, a year ago.

Excluding share-based compensation costs, amortization and other items, adjusted earnings came to 88 cents per share, beating the 87 cents expected by analysts polled by FactSet.

For the full fiscal year through March, BMC said it expects adjusted earnings of $3.49 to $3.59 per share, slightly better than the $3.49 that analysts were expecting. The company said it expects revenue growth in the mid-single digit percentages from the $2.17 billion in revenue it posted in the previous year.

Analysts had been looking for annual revenue of $2.25 billion, a gain of less than 4 percent.

The company also said Wednesday that it had approved the buyback of $1 billion in shares, and plans to complete the buyback in the next 12 months, reducing its share count by about 15 percent. CEO Bob Beauchamp said the new buyback plan was the result of discussions with major shareholders.

BMC shares rose $1.10, or 2.7 percent, to $41.80 in after-hours trading Wednesday following the announcements. It closed down 28 cents at $40.70 in the regular session.